When David Logan (name changed in respect for family) drove himself to the ER on a spring day of 2012, he complained of shortness of breath and discomfort spreading to his back, jaw, and throat. Although these symptoms are often related to a heart attack, the ER doctor found it unlikely a healthy-looking male in his early thirties fit such a diagnosis. The medical staff admitted Mr. Logan and soon after the doctor on duty put a plan in place that included looking deeper into why a young fit person was in such agonizing pain. No one would have guessed that this afternoon would be Mr. Logan’s last.

Pain and discomfort is the #1 reason people visit their primary care provider. Their motivation to invest effort, time, and cash stems from an uncomfortable state that reaches a point of “doing something” in hope of relief. The same type of pain is what it will take for PMs (precious metals) to rise far beyond what most of you can imagine.

As most know I live in the United States. I also live in a flyover state that has seen more winter than any sane person should see in a lifetime. But other than a few winter annoyances life here in the US is pretty darn good. In fact, it’s so good that most individuals never consider the monetary “pain” that will eventually grip even the most wealthy of all countries.

The fact you’re making the effort to explore physical silver or gold amazes me. I have no idea what motivated you to make such a decision but I commend your insight, congratulations. You are, medically speaking, the person who practices routine checkups to eliminate a painful problem before it develops.

But most folks living life are too busy to live like you. They assume all is economically well because everyone else does. They see a steady paycheck paying monthly bills and they still have enough left over for pizza and adult beverages at week’s end. These same individuals also assume a rising DOW, and housing market, are signs of a stable economy. Buying physical gold or silver is at the list bottom for the aforementioned.

The folks too busy to invest in PMs fail to understand why things appear normal in 2014. Honestly, this may sound harsh but most folks don’t care what it takes to maintain normalcy. They suffer from a term call normalcy bias which enables them from accepting the fact that someday a situation nearly unimaginable will happen if we continue to defy economic law.

The monetary reckoning we’re describing should not be interpreted as “dooms-dayish”. It should be viewed more as imminent than unusual. so let me explain. It would be unusual that a society, or economy, continue along as normal while simultaneously compiling mountains of debt and deficit in order to do so. Your neighbors on each side accept this normalcy because this form of “mortgaging the future for a better life today” has lasted their entire lifetime.

Why can’t perpetual borrowing lead to never-ending economic normalcy?

Most of you reading this are not happy with today’s governmental leadership. You often ask why it is that the majority continue to elect leadership that allows the government to expand, not to mention infringe, into the very freedoms this country is founded. The answer is describable with one easy word, APPEASEMENT.

The same reason your hunk of gold or silver hasn’t risen is the same reason failed leadership is reelected. Politicians have figured out that a simulated state of economic normalcy will appease the people just to the point of complacency. This is why our national debt rises to historic highs and the same reason why we as a people allow a congress to borrow $.43 of every dollar allocated and spent.

The world is aligning into a new age, and this tension is growing obvious. A global economy based on a USD (US Dollar) reserve currency has never been in question as it is as you read this. The tension stems from countries heavily invested in our currency, thanks to decades of buying revolving debt, yet angry that only one country can print USD. The tension increases when we consider the economic instability of the same debt-holding countries that rely on a strong US economy.

Today’s tension will eventually lead to economic pain. Again, it would be unusual if it didn’t. As countries around this spinning globe retract from a USD acceptance, so will a US life of normalcy. Ordinary folks will question failed leadership and monetary over indulgence and this will not bode well for the political status quo. The pain will cause nearly all to question “why” on every level of what not long ago was normal, both politically and economically speaking.

This awakening is imminent but timing such an era is impossible. Until this day the value of silver or gold will elude most and rising prices shouldn’t be expected. The true reward for your prudence will come only after the world awakens from normalcy bias, and they will!

QUESTION:DC, are you okay? Haven’t heard much from TPS in awhile!!!

TPS Reply: I’m fine…… but thanks for asking. Like most of you, I’m, too, very busy with raising a family and running business. I one day looked at TPS and realized precious metal was on hiatus and honestly this site now has the unbiased information someone needs to make an informed decision when it’s time to buy physical metal.

I have plans to update TPS more often but until PMs break from hiatus neither will I. Thanks for asking, and the concern of many readers.

QUESTION:I am very appreciative of TPS and the information you provide, thank you. My husband and I often discuss how things have changed in our lifetime (both good and not so good) wondering how life for our grandchildren will be influenced by today’s misgivings? We both vividly recall our parents describing the pains of the Great Depression and worry that society has forgotten how quickly wealth can disappear. We own physical PM and have for years. We don’t own PM to get rich but in hopes of providing economic stability for our family long after we’re gone. Just wanted to share this with you and your readers.

TPS Reply: Thank you for sharing, and you’re welcome. I love to hear from our readers, like you, who share great concern for this great country. You mentioned something that made me really think with how quickly wealth can disappear and how today’s society has forgotten the pain, both monetarily and socially. It’s sobering how quickly paper wealth can vanish and it’s unfortunate how few understand the benefit of owning, or storing, some wealth in physical PM.

I also agree with your motivation to preserve family wealth over riches. It is important that each of us educate our youth on the difference between real money and fiat currency. As you know, what most call money today is intrinsically valueless and only holds value thanks to other people’s faith. As the faith diminishes so will a currency’s value and worth. At such time physical metal will shine as a safe store of value and this will lead to a PM scramble.

By the way, I hope you and all readers are following the recent news event of found gold treasure. It appears some lucky soul in Northern California unearthed several million dollars in gold bullion and rare coins. The value is speculative, but my research shows a melt value over $2 million and a collector value nearly $10 million. Now, here is what interests me. The backstory has gone completely missed by today’s overzealous media.

At the time this stack of gold was buried our monetary system was on a gold standard. This meant a twenty-dollar bill, or any bill, was exchangeable for the same dollar value in physical gold (twenty-dollar bill for a $20 gold piece). These days are long gone and we all know that a twenty-dollar gold coin is worth many times more than face value. But here is where it gets interesting. What if the party who hid this treasure would have put dollars into the cans, not gold coins? It is estimated that the value of the gold at time of burial was around $27,000. If in dollars, the unearthed value today of $27,000 is only a fraction of the long-term value of gold. Think of it, $2,000,000 in gold compared to $27,000 in USD?

One day your family will be very appreciative of your insightful thoughtfulness. Thanks for sharing.

As we prepare to put the final wrap on 2013 – there is one thing I know for certain. Neither gold or silver shined this year. In fact, neither metal has shown promise for several years, respectively. But the winds of change have me rethinking my nearly year-long resistance of adding more metal to my personal stash. For what it’s worth, I’ll pass along my opinion and then the decision to buy, or not, is all yours. Since this site, nor I, sale PMs (precious metals)…… I see no reason to “cheerleader” the unbiased facts.

Precious metal is testing the faith of even the most devote PM holder all while other asset classes confidentially climb. The DOW is on fire by rewarding her faithful nearly 30% year-to-date. Some parts of the country’s real estate market are feeling the same positive appreciation as historically low interest rates support rising home values. So, what the heck happened to PMs?

It took only a couple of years to undo gold’s decade long reputation as a steadily climbing safe haven. Folks today view gold, especially silver, as a high-risk asset with expectations of more decline. This expected decline is based on recent performance more than commonsense or an economic mindset.

The next rise in PM is imminent in nature but the unknown is how low will both metals fall before the next great rebound. We can argue short-term expectations (gold or silver) but long-term speaking leaves little room for discussion. Not even the most economically optimistic person can name one growing asset unsupported by central bank intervention.

The ability to support an economy with fiat currency can not last forever, but it can outlast the faith of many folks entrusting silver and gold.

The 60%, or so, Americans still willing to trade effort for a paycheck are divided into two wealth classes. The first class is working to pay monthly bills all while attempting to build wealth (capital). The second class has wealth and is now trying to preserve it or, maybe better put, not lose it. The option to own physical silver or gold is reserved primarily for this second wealth class, but not exclusively (ones living check-to-check most often end up selling physical PMs soon as times get tough).

Now here is where things get interesting. Citizens of America are beginning to realize the biggest threat to their wealth is political. New laws like the Affordable Care Act are less about providing healthcare and more geared toward political control and wealth distribution. Think of it more like a well camouflaged form of modern-day taxation (penalty). The hook is now set and the wealth of America is ready to reel in thanks to unaffordable premiums or fines for opting out.

A rising DOW is nothing more than the distracting hand of an illusionist. Controlling political power is only possible by controlling the wealth of the people. When the majority depend on social programs then those in charge, politically, will stop at nothing to find creative ways to transfer your wealth in order to sustain their political power.

Why it’s nearly time to buy more gold.

The political climate we’re facing is more than just a loss of freedoms. We now live in an age of inherit confiscation meaning all exposed wealth is in jeopardy of some kind or another. This realization, or awakening, bodes well for physical precious metal and the soon-to-be-seen rising values of both silver and gold. In other words, the PM bottom rests in the faith of the masses.

Today’s dollar value assigned to each ounce of silver or gold is a byproduct of PM faith.

The article mentions how, “gold doesn’t have many friends”. I agree, but articles like this are partial proof why the time to stack more PMs is close at hand. Since 1970ish, the economic rule of thumb proves one downtrodden asset will climb soon after one faith-filled asset begins to tumble. I know of no crowds lined up to buy physical silver or gold. In fact, PMs are as far off the radar as they’ve been in decades or, as the article’s author puts it, “friendless“.

Sure the reduction in mining due to lower than expected prices in 2013-2014 plays into our “buy or not buy” scenario but not nearly as much the geopolitical & economical climate we’re living. A reduction in mining is only but one of many forces leading to the perfect storm of metal prices rising.

Is all this proof enough to run out and buy physical silver or gold? No, it’s not, at least not for those already protected and looking for the right time to add more. But this does mean the time is nearing. Until then we should live life and be thankful for what we’ve been blessed with.

QUESTION: Do you have plans to buy more silver in 2014?

TPS Reply: Thanks for the great question. As you know, I bought little PM in 2013. The PM market was too unstable therefor I held my wealth in cash all while patiently waiting for metal prices to stabilize. But those already holding physical metal have this option. If you’re new to PMs I strongly encourage you to consider taking a hard look at trading dollars for PM.

Honestly, I have no plans to buy or not buy in 2014. I don’t use a calendar to determine my next purchase. I’ll base my decision on the political climate as much as anything else. It could be hard to deny the temptation of $18 to $20ish an ounce physical bullion, I’ll admit. By the way, I view my PM holding in terms of ounces over dollar value. Dollar values of physical silver, and gold, fluctuate along with the paper PM market and can be misleading (one event is all it could take to send PM prices soaring).

My opinion is we will soon see a great separation between paper and physical PM. Until then- more of the same should be expected.

COMMENT:My identity was stolen this year, you can’t believe the never-ending hassle it has caused. My bank keeps reminding me they will stand behind my losses but I can’t help but wonder if this is a sign of the times. You often mention the safety of storing wealth in precious metal but I can’t help but wonder if the same theft risk is possible. At least my bank is willing to replace what’s lost.

TPS Reply: I’m sorry for the trouble you mention. I’ve heard from at least six other readers this year alone who’ve had their identity stolen, same as you. Cyber crime is the newest threat to our banking and financial system. This crime is unlike any form of thievery before since technology only recently offered such an opportunity to transfer digitized wealth from owner to thief. Online security measures are nowhere near par with today’s cyber threats, this is concerning as you know.

The threat of cyber crime is nonexistent with wealth stored in physical silver or gold. This is one of the benefits of storing physical metal in a safe/secure location over storing wealth in a traditional savings account at your local bank (dollars). You’re right, most banks are doing what they can to resolve bank related cyber crime but online security experts claim this will not always be the case. Some banks will only stand behind depositors who can prove they are doing a depositor’s part of securing online activity.

My guess is banks will soon impose a “cyber protection fee” to depositors and credit card holders. This fee could fluctuate according to cyber threats and a bank’s losses. Please add cyber crime threat as yet one more reason to consider owning physical silver/gold AND physical dollars. HAPPY NEW YEAR TO ALL.

Coeur d’Alene is a majestic city nestled within Idaho’s panoramic Panhandle. Lakes, national forest, golfing – you name it and Coeur d’Alene has it. According to Wikipedia, this Idaho city has a population of nearly 50,000 with nearly 93% of them white and the remaining 7% a blend of African American, Asian, American Indian, and Hispanic descent. Not exactly your typical inner-city demographics, respectively.

But Coeur d’Alene has at least two residents, or at least visitors, they can do without as of August 5, 2013. Because this summer morning was the day over $250k worth of silver and gold coins were carted away right in front of a PM (precious metal) owner who assumed their stash was safe. Unfortunately, this type of crime only indorses today’s need to secure and diversify your storage plan.

COEUR D’ALENE, Idaho — Several hundred thousand dollars worth of rare silver and gold coins were stolen in a burglary early Sunday in Coeur d’Alene.

It happened around 12:55 a.m. when the 54-year-old homeowner returned home to find an unknown man standing in her doorway and a car parked in her driveway. When she asked him what he was doing in her home, a second man emerged from the car, according to police.

The second man yelled at her before hopping in her car and driving away from the car at a high rate of speed. The man who was in the home then jumped into the truck in the driveway and fled the scene.

The victim went into her home and found her disabled father was unharmed and in his bed. Police said the thieves took two safes filled with rare coins valued at a total of $250,000. The suspects also took prescription medication belonging to the victim’s father. KTVP.com

I don’t want to read anything into this article other than what’s reported, so let’s focus on the facts. The most relevant point I see after reading this article is that no one was hurt or killed defending something that is replaceable. The second most relevant point is how quickly something so valuable can disappear, even in a relatively small city in Idaho’s Panhandle.

The aforementioned article proves the importance of protecting your stash regardless your neighborhood’s zip code. I have no way of knowing if these victims lost all their PM stash; my bet is they did. I doubt storage diversification ever entered the mind of a family securing silver/gold coins at home and in a safe.

A theft like today’s dissection is rarely random. While researching for my book on storing PM it became painfully obvious that folks who own PM, yet fall victim to theft, unknowingly participate in the crime. They participate by not taking a proactive approach to PM storage. Well over 90% of all stolen PM is never returned to its rightful owner.

Before we unfold three protective suggestions I would like to share one other opinion. My opinion is that far over half of all PM theft is never reported. Most folks who store wealth in PM are far too discrete to share anything that will expose themselves as PM prudent. Now, with that, let’s dive in.

INSURANCE:

The most common question TPS (The Prospector Site) receives is in regard to PM insurance. Most readers are surprised to hear that PM stored at home is insurable but they’re most surprised to hear it’s reasonably affordable, as well. Insuring your PM in-home stash is not for everyone. I’ve witnessed several phone consultations where the folks shot down PM insurance before I could get the entire suggestion from my mouth.

You’re right, the steps to insure in-home PM will produce a paper trail AND expose you as a PM owner……. at least to the company writing the policy. There is no way around this other than using a trusted friend or family member (to store and insure), and I’m not sure I want to go on the record endorsing such a suggestion.Exposure is the price a person will pay to insure PM stored at home, sorry.

Expect to answer a number of questions before settling into the peace of mind that comes with being insurable. Questions like proof of PM purchase, history of burglary, your home’s exterior, etc. should all be expected. Expect to pay somewhere in the neighborhood of a $500 premium per $100,000 insured. I’m sure the premium varies so email me for more information or for an insurance source.

LAYERS:

The best in-home storage plan has little to do with the size of a gun safe or how powerful the weaponry protecting your abode. It is far more beneficial to have a multilayered storage plan than the best safe in town.

The foundation of a good storage plan is discretion at time of purchase…… and every moment thereafter.

Discretion is a hard gift to wrap. Once word spreads that you own physical silver or gold it’s hard to reverse course and nearly always assumed the metal is kept inside your home. This is why so many PM thefts end with the family sitting side by side at gunpoint before someone finally divulges the hiding place. It should never come down to risking the well being of your family, never!

STORAGE:

Never store all your PM at home. In fact, never store all your metal in any one place. Although I do recommend storing at least 1/3 within arm’s reach, I don’t recommend taking such responsibility if you’re not comfortable defending an in-home stash. Also, for those who frequently travel, in-home PM storage should be carefully considered before formulating your PM plan. A vacant home carries far more risk than one inhabited.

This could sound strange but most PM theft originates from someone close to the family. It could be someone from the remodeling crew, or it could be the nephew battling addiction of some kind. The only antidote for this risk, other than discretion, is storage diversification.

There are more reputable places to vault today’s PM than I can list. Some are domestic and some are international. Nearly all are outside of today’s banking system and this benefit will grow as world governments look for creative ways to tax her citizens. This opportunity to stash wealth outside of a country of residency is a closing window.

The internet blazes with bank box horror stories, and I’m sure a few are true. But the truth is, as of November 2013, storing SOME metal in a locally owned bank is far safer than the storage plan implemented by most folks. Storing some metal in a bank box is far safer than leaving it at home while snow birding for the winter.

It really comes down to the most practical storage method in relationship to your situation.

Well, as you can see there can be plenty to consider before bringing home the next monster box full of silver. The first step is taking the mental effort to educate yourself before anything else. Protecting the metal that will someday protect your financial future is always worth the effort.

QUESTION: What do you think of today’s PM market? (several similar questions & versions).

TPS Reply: Thanks to all who’ve called and emailed with similar questions. To answer the question in one word, ugly. I’m not a good cheerleader and I’m guessing you don’t read this site for anything other than unbiased PM fact. Physical silver and gold have underperformed for sometime now. You don’t need me to spell out the obvious.

Several experts have attempted to guess when metals will rise, and all have ended up looking unprofessional. My guess is that most PM experts have underestimated the power of printing currency in order to appease the masses. Remember, the purchasing power of PM should be the focus far over the dollar value. The ability to print money has supported an economy that otherwise would be in major economic correction.

Today it takes nearly 12 physical gold ounces to equal one DOW (16,000 +-), or a 12-1 gold to DOW ratio. As you know, the DOW is made up of 30 major industrial corporations who benefit from a print-based economy. One market benefits from printing (DOW) while one market (precious metal) stumbles along sideways.

The fact physical silver or gold is not rising depresses most of my readers but the reality is we should appreciate this temporary state of economic calm while it lasts. The ability for world currencies to monetize themselves is a closing window. Once this window closes I have little doubt asset-to-asset comparisons will swing in silver/gold’s favor. Until then, more of the same should be expected.

The only indicator we have is history. History has not supported economies that overproduced currencies, not without major inflation, deflation, or even stagflation. Where we are now is somewhere in the economic digestive tract as currencies around the world continue to blur real money value (gold) with nonstop paperless printing.

For what it’s worth, my plan is to stay the PM course while simultaneously using this era of temporary stability to create additional income. Thanks again!

Amnesty, by definition, has the same root as amnesia. Amnesia is the ability to forget and forgive all remembrance of an offense or occurrence. Today we will pinpoint exactly why today’s politicians are hellbent on expanding amnesty, free health-care, EBT participation (among other programs), and how this trend will ultimately influence precious metal higher. This has nothing to do with Republican or Democrat. This is 100% about the ability to gain political influence at all cost. Even if it means taking down the most powerful country ever to exist. Let’s dive in.

I write this as politicians sweep up celebratory party favors on Capital Hill. The war is won, at least for a few months, and the never-ending pattern of print and spend will continue. The answer is always “borrow more” regardless the challenge, regardless the program.

While the party favors still floated through the air, President Obama made what some feel was an unexpected statement by mentioning the importance of immediately getting back to work on the amnesty issue. His statement came while opponents still wiped away fresh blood from a vicious political battle they have little chance of winning; here is why.

Oh, by the way, this post is not motivated by personal political opinion but by fact. My opinion of all things political should not affect if you do or don’t protect yourself with silver or gold. Now, with that out of the way let’s continue.

It doesn’t take an accountant with Ernst & Young to declare that our country is monetarily broke. This means we as a country routinely spend more than what comes into our Treasury. So this leads some of us to attempt to explain why those in political control feel the need to expand programs or expand law that adds to such a deficit burden.

It is no secret that laws like Obama Care will add to our national deficit which leads to printing more money (the trendy term for “printing” is now “quantitative easing”, please get with the program if you’re still calling this necessity anything other than QE). Sure politicians claim crafty accounting measures, new taxation, and new regulation will pay for Obama Care but at day’s end we all know differently, as do they.

The same goes for the upcoming amnesty chess match. I once mistakenly believed that nationalizing healthcare was the Holy Grail of all things political but amnesty has proved me wrong. Declaring amnesty with a population of people mostly impoverished is ingenuous for those thirsting for perpetual political power. Somehow those who benefit from amnesty confuse this opportunity to benefit from such social programs as a part of the American Dream. This misnomer is a terrible misbelief.

Things that are free to the public only work if those providing the service work for free. Free health-care clinics work when those passionate about taking care of others donate their expertise and time. There are no exceptions, I’m sorry.

Same goes for declaring the millions waiting for amnesty who primarily, or at least partially, depend on state and federal programs for housing, healthcare, and groceries. These, too, only work when such programs are mostly provided by donation of time, money, and effort. They certainly will not work…… long-term speaking, in a country already bulging from never-ending deficit.

Far too many in this great country like to blame the recipient when the blame belongs elsewhere. It’s human nature to take the easy path in life. Of course this country was built on hard work and risk, I certainly won’t argue this fact, but this doesn’t change the rule of human nature. I blame those thirsting for political control far over those working the system.

The future price of physical silver and gold is greatly influenced by the 600 words aforementioned. As our country becomes more dependent on the expansion of government programs this will greatly sway the political influences of the people. Those in power, both fiscally conservative or progressive, will have little choice but to vote according to the pressure of the masses.

If the masses depend on social services then how can we expect those in power to not legislate to appease. We are reaching a point when a politicians very life could be in danger if not.

It is important for those thirsting for political power to swell the nationalization of all things necessary in order to maintain control. What those in power ignore is the long-term effect of printing money to support such recklessness. We, as a nation, have reached the monetarily point of no longer turning back this perpetual necessity of printing currency to appease the masses.

Some of you are still asking what the heck is going on with the price of physical PMs (precious metals) over the last year or two. Your viewpoint is shortsighted, respectively, when we consider the long-term recourse of debasing the US dollar in a nervous globalized world. Precious metal will rise up until the world finds monetary balance….. not a moment sooner.

This isn’t to say we won’t see valleys before then. Nothing of value is unaffected in this monetary ocean of ominous uncertainty and intervention. Precious metal will rise unexpectedly and it will nervously decline too. At day’s end – I know of nothing as protective as storing part of your wealth in physical silver and/or gold.

QUESTION: Hi there. Last week a friend who works at the Royal Australian Mint (RAM) gave my daughter a 1oz silver proof like coin (lunar series, 2013 year of the snake). My baby girl is 2 months old.

This was good timing as I’ve been researching investment options for her (looking at shares mainly). after receiving this beautiful coin I started researching into gold and silver investments. This is how I came across your site. Very informative site btw. Thank you for sharing your unbiased views.

I’m now considering silver as an option. We don’t have huge amounts of cash but want to start her off and add to it each year for birthdays and Christmas. I was wondering if you could clarify a few things for me as I’m a bit confused. I’m a complete beginner but am a fast learner.

1) What is the difference between proof and proof like coins? Is it good enough to buy proof like quality coins. E.g. A 5oz silver proof Luna snake from Perth mint is $480 where as proof like for the same thing at the RAM is $357.

2) What’s the difference silver bullion coins and silver proof coins or proof like coins? 1oz silver bullion I can buy from Perth mint for $33 where as the proof like is $80 and the proof is $99.

I do like the pretty shiny finishes of the proof and proof like coins. I have about $1K to start her off with. I saw in one of your blogs that you said you prefer to invest in 1oz silver coins. Is that silver bullion or proof or proof like coins?

Hope you can help me.

TPS Reply: Congrats……. I’m so glad to hear you’re taking such wise measures for your daughter’s sake (I’ve done the same for my two children). She is fortunate to have been born into such a caring family so focused on her future. Your questions are good and you are wise to question what is the best long-term investment for your hard-earned money.

I agree, the silver proof coins are exceptional. Although all coins made from silver or gold will provide protection the question is which ones will provide the most protection. I recommend waiting to purchase the proof coins until after you have a stack of low-premium silver bullion or rounds (I usually recommend legal tender silver bullion).

BTW, a proof grade coin is one of only the very best of the newly minted coins.

Amassing physical silver, or gold, is the goal. Any price paid in addition to the physical value of a coin is speculative. This is why I usually advise newbies to amass as much silver as possible in exchange for the least amount of currency as possible. Proofs, as you pointed out, cost more therefor they are rarely recommended…… at least when new to PM. This is only my opinion so I encourage, and admire, your diligence.

The same advise goes for rare or numismatic coins. This coin or bar choice almost always comes with an added premium subjective to opinion. This added premium can be volatile, in fact, volatility should be expected especially with rare coins. Paper PM is not recommended either.

Good luck and please stay in touch as your plan progresses. Thanks for the questions and comments.

There is an interesting commercial making its rounds where a gentleman travels the world all while shouting, “Set for life” along each stop. Obviously this guy recently won the lottery and is now out enjoying the experiences of only a lucky few. Now, for the record, I’m not a lottery player. In fact, I bought lottery tickets several decades ago when California first introduced a state lottery but never scratched them. Who knows, maybe I missed out on my own “set for life” opportunity – but I doubt it, and here is why.

Each person has their own perception of what it means to be set for life. Unfortunately most perceptions are unrealistic considering the time we live. “Yes” this includes those who store wealth in physical silver or gold, too. Somehow most of us walking God’s green earth falsely associate wealth abundance with a “set for life” situation; not true.

While consulting with those interested in storing wealth in PM (precious metal) I usually ask, “Why”. In other words, what is the goal of making such a nontraditional monetary effort when 99% of the pack is content on striving for the proverbial American Dream?

The answers vary between leveraging PMs as insurance (please see the Q & A below), wealth preservation, or even financial stability – but some flat out admit the goal is to ride gold, or silver, to a point of filthy rich. The ones motivated by the later fail to recognize what a world with $500 per ounce silver means for a society unfamiliar with economic correction yet victimized by decades of monetary intervention or the asset bubbles derived from such unrestricted intervention.

As of October 2013 things are clicking along pretty good, right? Sure we have Capital Hill arguing over Obama Care. Sure we have our national parks closed while the powers in charge battle over how to spend the next record level of borrowed money (currency), too. But all in all most Americans view life as improving somewhat content by the illusion of recovery. For most, they view the future as improving.

But those entrusting PM are not experiencing improvement. Many of you bought gold and silver only to watch it plummet, in dollar terms, well below what most PM experts could imagine. Some of you are to the point of doubting your prudence all while dismayed by a safe haven not looking so safe – I understand. The benefits of wealth stored within the confines of such discretion are yet to be realized, but imminently closer with each passing day.

For you – physical silver or gold is a world away from creating a set for life financial situation.

For you I offer this comfort. Enjoy this temporary era of monetary stability derived from the ability to debase a currency by creating trillions of dollars from thin air. Some, maybe most, trusting hard assets awake each morning thinking today is the day all monetary hell brakes loose sending PMs soaring to the moon. You underestimate the power to print money and the temporary stability it provides.

Looking into our future we see a set for life mentality replaced with the longing for opportunity. The dream of a never-ending retirement portfolio will be replaced with the dream of enough employment just to get by. The home on the beach replaced with a roof over the head along with a warm meal on the table. This new perspective will be the ultimate monetary education most are yet to comprehend.

But for now all those entrusting physical PMs live with the daily love-hate relationship that comes from a global currency yet to find its legs in an age of global monetary intervention. This writer will not pretend to guess when PM will break from the pack but if history is a good indicator then metals rising should be expected. Until then we stay the course realizing most living in the USA live a life well beyond what most of the world could ever dream.

COMMENT:I view precious metal as insurance just like any other “what if” insurance policy used to protect any other asset. Accumulating additional wealth byway of gold is not my expectation as much as protecting what I have. My PM goal is to preserve and my expectation is nothing more.

TPS Reply: Good, and thanks for the comment. I too view PMs as insurance but my opinion is you’re selling PM short by failing to factor the vulnerability of other dollar-based assets or the benefit of a universal currency (physical silver and gold).

Honestly, other assets will not hold today’s “value” in terms of comparable value. We must agree that a currency victimized by debasement blurs true value in a currency sense (cents). This is why hyper-inflated economies of the past used billion-dollar bills to buy loaves of bread. We cannot compare today’s bread value to such an era of debasement and economic calamity, agreed? Nor can we view those holding substantial wealth in hyper-inflated dollars as wealthy or financially protected.

I don’t singularly hold wealth in gold to “insure” or hedge against the value of my home or other personal assets. I realize gold rising will not support my wealth derived from other assets (insurance) as much as replace it. This is why PM experts refer to such a time as a transfer of wealth. Wealth transfers to countries, and individuals, holding hard assets. This is nothing new or just my opinion, this is historical monetary fact.

One other point, please. Overgrown governments do not go away without a fight. They first consume the wealth of her people in order to appease the masses (those feeling entitled). Five minutes watching your evening news will validate we are living in such a time as you read this reply. You can call it insurance if you like but I call it financial freedom stored in inconspicuous ounces.

Thanks for the comment.

QUESTION:I read how you store your savings away from traditional banking institutions. Can you expand on this?

TPS Reply: You’re correct, and I would love. The risk of capital controls in today’s age is very real. Some call it a banking “bail-in” – some call it a banking holiday. Regardless the term, the result is a separation of wealth which means a separation of personal freedom. A society separated from their wealth is vulnerable to those controlling it.

I choose to maintain control of my savings by storing most of it in physical silver or gold. This sounds unusual to most but up until the last forty years this is how everyone stored wealth (gold-backed dollars). A twenty dollar bill was easily exchanged for $20 in gold from a bank which means your savings was stored in PM.

Today nearly all savers view their savings as safe thanks to the FDIC. This safety net is less comforting when we consider this insurance will protect savers from an institutional failure but offers no protection from a capital control mandate. The difference should be researched if confusing.

This may come as a surprise but I’m not a gold guy. I own gold for many reasons but much prefer to store wealth in an emerging business properly structured and income producing. It is far easier to generate wealth from a small business than wait for gold/silver to appreciate.

Now, back to your question. If I need to use my “savings” I simply convert a few hunks of gold for dollars. This allows me take a vacation or do whatever anyone else could do with a more traditional bank savings. Email me, or call, to find out exactly how I safely make this PM to dollar exchange. Thanks for the question.

Atop the cake sits five candles. Each flame represents a year since our lives should have drastically changed, but undeniably didn’t. This September, September 2013 that is, represents the fifth summer/fall season since, for all intensive purposes, our economy experienced a credit crash. This correction should have propelled most Americans closer to poverty but only postponed an imminent lifestyle change unimaginable by most in our middle class. The next few paragraphs will outline exactly how we didn’t dodge a bullet and, more importantly, what role precious metal will play in an economic undoing. Thanks for joining TPS (The Prospector Site).

Our primary goal at TPS is to justify physical PMs (precious metals) and their role in creating a life of personal independence. The ability to own a worldwide universal currency is precious and, in all likelihood, a road map for freedom. Most folks making the effort to afford silver and gold are most likely not as distracted as the majority of fun loving neighbors.

The art of distraction is nothing new. It works on puppies and kids, it works on students and patients. Access to easy credit is what distracts most Americans into a state of complacency. This lifestyle almost came to a stretching halt in September of 2008.

Our lifestyle will not function “as is” without credit. You will no longer accept the effort of those in power nor will you be as distracted in a world of low to moderate credit. The true state of our economy will surface as markets 95% dependent on easy credit turn nearly dormant. From college debt to low-rate mortgages, to near-zero auto loans to plastic money; all champion the illusion of a healthy economy.

We only accept the recovery lie because of the ability to leverage ourselves deeper in debt, both as a country and as a society.

Today’s media appears to fall lockstep into this dependency trap but is actually nothing more than a mirror of our society. Social networking fills precious time with personal and professional drama all while distracting intelligent individuals with wasted time and effort. Even today’s world of entertainment is nothing more than a Miley Cyrus report or another example of intellectual compromise. From the latest smartphone to tablet — Americans will stop at nothing in order to be entertained.

The cost to distract us is getting expensive. No longer will American’s accept lower-than-historically-normal mortgage rates. If you want us to buy, or leverage, then near zero rates is what it will take. The same goes for new car buyers as they grow annoyed with anything but zero interest auto loan offerings.

We view credit as an ability to further strive for an American Dream not realizing the puppet master changed the rules sometime ago. You may view easy credit as an avenue to live beyond your means (whether you realize it or not) but Wall Street now depends on this ocean of debit as a primary source of investing. Think about it– your retirement future is now dependent on a derivative of never-ending debt creation.

Physical silver and gold can’t compete in today’s world of paper wealth. Metal’s smash-mouth method of wealth preservation is not fulfilling, nor is it entertaining, nor is it a viable distraction in 2013. Why “invest” in PMs when we can drive a new car or buy a bigger home?

Too few view the last five years in proper context. Less take advantage of this temporary reprieve to re-channel savings or wealth into physical silver or gold. The great distraction worked because so few understand a power committed to borrow at all costs jeopardizes her currency to do so. The end result is investors worth millions, probably billions (dollars), but still living a life in poverty.

We can no longer deny worldwide tensions that grow with each passing day. Syria is yet another example of an economic symptom as countries around the globe look for a justifiable reason to print money and further distract citizens. Americans grow tired of nonstop war drumming but fail to realize war is the ultimate political distraction. After all, how unpatriotic are those who fail to support our freedom, right?

As you can see the one commonality is the need to borrow and create more currency. Sure taxation and capital controls will find a seat within the first few rows but the big nut is credit/currency creation. I have no doubt physical metal will rise from the ashes as the world awakens from our great distraction. I also have little faith wages and lifestyles can keep pace with this next leg of monetary debasement.

Historically speaking the value of physical PM will rise in times of economic uncertainty and currency debasement. Folks, you don’t need me to point out that we are at the very intersection of economic uncertainty and currency debasement. The need to hyper-print our currency will only improve the wealth status of those safely holding physical silver or gold.

Reality will eventually snap us from our state of distraction. A hungry stomach, eviction, repossession, and foreclosure are hard to ignore. You have time to make a change; I strongly encourage each person to take advantage of this closing window.

QUESTION: With the threat of war growing can you offer some insight on how this could affect rising PM. You didn’t mention war in Why Silver & Gold Will Go Higher, any reason why? Loving TPS, thanks for your effort.

TPS Reply: Thank you for your support and questions. You’re right, I didn’t mention war in my book. In fact, lots of other PM influences didn’t make the cut either. Today’s book editors realize the attention span of most readers is retreating. We live in an age of constant information so her advice was to keep it simple, and she did.

But this shouldn’t undermine the effect of war costs that always lead to deficit spending and currency debasement. The belief that war is an economic stimulator is not true. Sure war spending will temporarily stimulate the economy but the long-term effect compromises a country’s national security and stability.

My opinion is that America is looking for another war. Look how many families now depend on a large military for employment, benefits, and retirement. I look for regional wars to expand into major conflicts as inflation/debasement tensions arise from currencies trying to keep their economies competitive. This type of conflict offers a green light for currencies to ramp up the printing process.

War legislation always carries pork in some fashion. Politicians realize few constituents actually follow the pork and most voters digest their news in tiny sound bites just before watching their favorite program.

Over printing a currency always leads to higher silver and gold prices. Values may not change but prices do just to keep par with inflation. This is the beauty of physical PM. This is why it is so necessary to trade fiat for real money while the option still exists. Did I mention the discretionary benefits of storing wealth in physical silver or gold? Thanks for the questions.

QUESTION: My local coin shop is making a good argument for pre-65 silver over the new bullion recommended on TPS. Any thoughts?

TPS Reply: I’m all for low-premium pre-65/64……. better known as junk silver. My question for you is what premium are they charging for junk? How does this premium compare to American Eagles, rounds or bars? I personally own both (junk and new bullion) but favor one-ounce legal tender coins most of all.

I realize you, like most readers, are focused on silver but please don’t forget gold. Gold is historically less volatile and definitely worthy of diversification. A 1/10 ounce gold bullion coin is not much more than five silver bullion ounces. Many TPS readers hold wealth in gold as a long-term method of storage and hold junk silver for when we reach a time of underground barter and trade.

I’m glad to hear you are trading at a local coin shop since it is important to support local trade. The ability to exchange some silver, or gold, for cash could become useful considering the age we live. Plus, most coin shop owners have short memories and little to say.

Precious metal is a well kept secret. Folks who own physical gold, or silver, seldom advertise their wise discretion. Few blab across social networking and less openly discuss the nuts and bolts of buying PM (precious metal). In most cases this leaves you, the novice, searching for the right metal offered at a fair price. It’s hard for me to put an exact percentage on how many newbies pay far beyond necessary but I will estimate more than half do, or receive less, than the metal recommended here at TPS (The Prospector Site).

FACT #1: Not all Gold is good

It is a misnomer that gold is always a good investment (paper gold can be the worst choice for wealth storage in many cases). Anything other than physical PM carries far too much risk considering our age of fiat correction and financial insecurity. For this reason alone paper PM is not worthy of today’s discussion or space.

Retail gold, like jewelry, is a blend of artistic effort and precious metal. An established value is always subjective but, nevertheless, still a store of value better than most of today’s “typical” investments. In times of economic despair jewelry returns to a value measured in melt worth. This is why I recommend new bullion, rounds or bars over jewelry.

All physical PM buyers pay a fee over and above the intrinsic value of a gold bar, round, nugget, bullion, etc. This “premium” is what makes those selling PM wealthy but offers no real value to you as the buyer. The older (or rarer) the gold hunk the higher the premium, very simple. In return…….. new bullion, rounds, and bars offer the lowest premium.

Most folks buying gold in 2013 are not collectors or speculators. They, gold owners that is, view the echos of economic recovery as back-ground noise and realize we very well could be facing the end of a great fiat currency experiment. For this reason alone all should own physical silver or gold.

I recommend due diligence before buying your first gram of gold. Old coins are cool but best saved for the experienced PM buyer. Proof coins are flashy but also best saved for those solidly vested in raw precious metal beforehand. Think low-premium PM offerings that are easy to store, insure, and someday sell or trade.

FACT #2: Not all PM advice is good

This site doesn’t sell silver or gold but I would love to know how many precious-metal peddlers hear, “I understand gold is a good investment. What do you recommend?” At such time the art of buying or selling PM is in the hands of a stranger who could be more profit inclined than making sure you receive the best bang for your buck.

I hear so many nightmare stories of good gold intentions going bad. These tales always include trust, deceit, disillusion, distaste, and eventually embarrassment. At the end of the day far too many pay far more than necessary, for PM, because they fail to arm themselves with education.

There is no reason to fall prey to the PM distrustful, not in the internet age. Your education should not come by way of solicitation. Hard asset sellers are always well rehearsed with trigger words and phrases. These trigger phrases stir emotion and prompt protection but have no place for those implementing a controlled PM plan.

The best source for education and advice always comes from the unbiased.

FACT #3: You will someday sell

I have a close friend that has owned physical silver for years. He has no plans to ever sell regardless the value, regardless the offering. What he doesn’t realize is that someday he or someone sharing his last name will sell, or trade, his buckets of silver. It could be for profit, it could be for freedom, or it could be to feed the family, who knows…… but it will trade hands someday.

I personally will not buy silver or gold that I can’t easily track real-time value. Sure owning a coin that spent hundreds of years lost at sea is cool but how does the average Joe know its true value. After all, the only guarantee we have is a fluctuating melt value, right? For this reason I recommend asking two questions before committing to buy; how much are you asking and how much you will pay me to buy it back.

The difference between the two prices is very important. As of August 25th, 2013, a one-ounce gold bullion will run a buyer around $1475. The same bullion, less the premium, will sell around $1390-$1400ish. A second-hand market will bring a few more dollars. By the way, some PM buybacks require a dealer or broker to notify the IRS, some won’t. Do you know the difference?

But our faith in PM has less to do with dollars with each passing deficit day. Gold’s true value is its exchange value. For instance, I pay less attention to what gold trades in dollars compared to how many ounces of gold it takes to buy an average home in my neck of the woods or a sandy retreat countries away. This exchange value is the future gauge of your net worth. Dollar value is relevant now but this could change quickly.

QUESTION:Thanks for answering my questions, DC. Yes, it’ll be scary if the governments get creative and do something like Operation Rize. Can’t agree more about diversification. As for the insurance, I think I’ll ask a jewelry store nearby first.

And what do you think is likely to happen in the future? Will we have a repetition of what happened in 1980, where PM prices skyrocketed and retraced later? But considering the world’s current level of debt, can the central banks raise the interest rates like they did back then? Or will we have hyperinflation? But are the central banks so stupid to allow that to happen? Will we stick to PMs forever, or will we have to switch to other assets someday?

Looking forward to your reply and thank you very much.

TPS Reply: You’re welcome, thanks for asking great questions. What happened to PMs in 1979-80 was amazing but only a small sample of our future. So many things have changed on a global level that will affect us all on some capacity. Some will prosper but most will fall victim to an existence that only existed because of a debt-based lifestyle. I have great concern for those not PM protected.

TPS often hears from readers who boast over their debt-free lifestyle. This is great, and recommended, but the truth is all will fill the pain of worldwide default as it becomes painfully obvious trillion $ obligations can never be repaid. This mess is what happens when we live in a society consumed by the here and now. Our commerce world has consumed the minds and energy of far too many.

You’re right; central banks will send all major currencies into a level of inflation unimaginable. I’m not sure if hyperinflation is the correct term but, nevertheless, it will not be kind to those attempting to live on a fixed pension or income. Most victims will view these days of economic correction (disaster) as “depressed” not realizing such a time is nothing more than another example of what happens when a fiat currency is overproduced. Silver and gold will account accordingly.

A dangerous trio has hijacked America’s future. The FED (central bank), Wall Street and politicians now control our economy. Washington DC proper now boasts an economic boom while the rest of America suffers from a myriad of challenges including, but not limited to, low-paying jobs, rising cost of living, financial tension, etc.

The world’s central banks circle the wagons in order to save our fragile banking system but not willing admit this effort is futile, destructive, and unfair. Anyone relying on a currency, not real money or hard assets, will, too, soon realize wealth stored in paper is growing worthless. Such an era will bode well for those holding physical silver/gold and my prediction is this run will not end anytime soon.

Although, we will reach a point when other assets will become so affordable, in terms of gold/silver, that the temptation to barter will flush wealth out of PMs and back to traditional assets (like real estate, stocks, etc). I don’t see a PM bubble anytime soon, nor do I see anyone holding PM in a hurry to trade. Thanks for the great questions and comment.

QUESTION: Have you noticed the national debt clock? This is only possible because of our digital non-existent currency age.

TPS Reply: Yep, it keeps rising, right? This is what happens when a government grows beyond its tax base. My recommendation is to keep stacking silver and gold until it stops.

Our transition to a digital currency is right on time. How else can a currency realize such creation on a global level? We are in the fourth quarter of a fiat currency meltdown created, and now propelled, by nothing more than greed and a political failure to transmit honesty, integrity, and strength. Other than that — this administration and other political leaders are doing a fine job by systematically dismantling our country piece by piece.

At times you can feel “change” in the air. After years of war, it was likely a young Senator from Illinois was a frontrunner for a 2008 presidential election months before a November opportunity. Why, because change was in the air even if this change was nothing more than a flashy campaign slogan? Flashing forward, another “change” swirls but this change is less opportunistic for most but profitable for those holding wealth in physical silver or gold. My only advice is to brace yourself for this monetary change.

I can think of nothing as financially devastating, to most Americans at least, as the 2008 DJIA disastrous decline. Within months the DOW promised 15,000 only to tumble, and then tumbled even more, until a 6000ish DOW left nervous investors asking just how low can a modern-day DOW decline. The wealth and future of America was nothing short of in peril.

The winds of change today, late summer-early fall, are reminiscent of 2008. Far too many hold faith in a DJIA supported only by trust and the ability to overpopulate a currency. Also, far too many forget how quickly asset bubbles burst and investment dreams vanish.

Today we’ll compare rising gold/silver to a vanishing DOW. I’m certain both will happen, in tandem, but have no idea when. I suspect soon.

In my opinion, the most likely short-term scenario to double silver and gold’s worth is a DOW collapse. For this reason I would like to compare a DOW decline similar to 2008s to today. In return, let’s compare the effects of such a DOW decline to silver and gold accordingly.

The 2008 DOW lost over 55% of its value in the fall of 2008. This wave of uncertainty challenged gold and it, too, fell around 20%. But gold rebounded nearly 90% over the next few months leaving physical gold holders not only confident but monetarily rewarded for their good stewardship.

GOLD:

Percentages can be a little blurring so let’s put dollar numbers in their place. If today’s DOW dropped 55%, like in 2008, this would nestle our favorite blue chip stock average somewhere in the neighborhood of 6930. If gold, too, followed 2008′s pattern this would put gold around $1064 per ounce.

But as mentioned gold didn’t drop long, or far, until nervous investors found the one historically proven hard asset worthy of investing, and investing they did. This time will be no different, in fact, this time nervous investors will “double-down” as they realize adverse monetary effects are the new common.

After a brief decline (gold declined around 20% September 2008), gold found footing and I suspect this time will be no different. Accordingly, this would leave paper gold at $1436 (six months), at $1862 (12 months), and $2128 (18 months). I would think the physical market (premium) for gold could easily add another $200 +, per ounce, to the aforementioned dollar values. Now, this leaves silver.

SILVER:

The 2008 DOW meltdown pushed silver’s paper value down 50% (from $18 to $9 per ounce). But this discounting didn’t last long, nor did physical metal supplies, as new silver investors found great reward for their monetary prudence. Now, let’s plug today’s silver price into such a 2008 scenario.

If silver dropped 50% today it would leave paper silver selling at $10.75 per ounce. Within six months silver would reach $16.12 (50%), and then $20.42 (12 months), and then $21.50 (18 months)…….. according to our 2008 comparison.

But these values fail to account for rising premiums, like in 2008-09. By example, October (2008) 100-ounce silver bars carried an additional 50% +premium on the secondary market, silver Eagles even more. This pushes our $20.42 paper silver to just under $31 for physical silver ounces, at least.

The secondary market is the future of how physical gold and silver exchanges – but don’t expect bargains from those willing to sell. Typically, secondary markets grab as much as possible by taking advantage of those late to the investment party(this information, although thought provoking, is nothing more than proof how one asset correction will temporarily influence precious metals. The one long-term monetary constant is value stored in sound money via hard assets).

QUESTION: DC, I’d like to ask about safe deposit box (storage). How safe is it, actually? What will happen to stuff inside the boxes if the bank shuts down? Love your blog, anyway. It helps me to focus on long-term protection instead of short-term volatility. Thank you.

TPS Reply: I’ve waited for this question….. so thanks for asking. Make no mistake; we are nearing a point in which wealth stored in banks is at risk. This includes assets stored within bank security boxes, as well. The question is which method of storage carries more risk. Many of my readers choose bank storage because they’re not comfortable defending metal stored at home or business, this I understand.

If we must pick between the lesser of two evils I have a suggestion. Why not diversify and insure your physical metal? Insurance is available for both home and bank vault stored PM. This insurance also covers the risk of transporting the metal to and from. I’m not sure if Indonesians are eligible for this insurance so contact me if you’d like my assistance.

So far this year 18 banks have closed here in the US. All reopened, to my knowledge, under a new flag and all box contents transferred along with bank ownership. This change didn’t affect those renting deposit boxes. But we live in an age of great volatility and greater uncertainty. This means all exposed wealth will eventually be challenged by creative governments looking to find a fresh means for new taxation and wealth accumulation.

I’ve personally only used bank box storage while away on extended travel, like internationally. I weigh the risk at the time and pick between the lesser of two evils. The bottom line, I know of no 100% secure or full-proof means to store physical precious metal. This is why I recommend diversification and insurance. Thanks for the great questions and comment.

By the way, your long-term comment is spot on…… good way of approaching PMs.

COMMENT:Metals are rising!!!!!!

TPS Reply: They are, and this is a good confidence boost for those new to PM. I can’t tell you how many emails TPS has received from new readers who bought discounted PM only because of this last PM correction. I know many readers are frustrated but the opportunity to buy discounted metal truly allowed more to join the PM table.

Gold and silver rising is great but pale when compared to the advantages of discretely storing wealth out of sight. All exposed wealth is now under threat of taxation, confiscation, and blame. Why not take advantage of this temporary opportunity to trade dollars for unregistered wealth (physical silver or gold)? Not to mention the opportunity to store this wealth in many different countries, and outside the banking system.

By definition, the word captive describes the action of something, or somebody, held prisoner by a person or group until specific demands are met or money is handed over. Today I’ll explain how this affects you and why wealth stored in banks, all banks, will soon fall hostage to a condition I can only describe as a banking prison. Please add this risk as yet one more reason to store some wealth in physical cash, silver or gold.

Just the mere mention of “prison” and we picture worse offenders serving time in places like Alcatraz or Port Arthur penitentiaries. Few picture our local bank as such a site of incarceration or captivity. After all, banks prism beauty, security, strength, structure, and trust. Depositors rarely question the risk of an imminent hijacking of wealth, not from their bank at least.

The articles below prove how powerful a grip our banking industry has on the political orientation of tomorrow. Remember folks, this money is yours. Congress is nothing more than the entity elected to disperse our money in a responsible fashion.

An Obama administration program is under fire, with federal investigators finding that community banks used the government’s funds to pay back recession-era bailouts – instead of lending the money to small businesses as originally intended. source -CNN Money (April 2013)

or

The Treasury Department does not require banks who have received the money (TARP) to show how they are using it, claiming that it is not possible to demonstrate on a bank-by-bank basis. source – CNN Money (August 2009)

or

And here comes Goldman Sachs (GS), the royalty of Wall Street, racking up a huge $3.4 billion quarterly profit and making plans to pay bonuses that could average well over half a million dollars per employee.

Goldman, of course, is accomplishing this with the help of a $10 billion TARP loan from the government. source –Seeking Alpha

Since September of 2008 the protocol is nothing more than saving banks regardless the cost, regardless the irresponsible risk that crippled a once strong banking system. The marriage between Congress and a private Federal Reserve Bank (Bernanke) appears innocent enough but has created a one-sided monetary structure with little accountability. This is by purposeful design.

Each week I present facts as to why physical PM (precious metal) will rise in value over the balance of your lifetime. But the issues we’re facing today go far beyond profiting from PM investments. Our situation has transpired into financial survival in order to maintain some sense of personal independence. Silver or gold, regardless the price, is one of only a handful of positions to store wealth outside a corrupt banking world.

For those willing to take notice….. big bank officials now bounce back and forth between political positions of advisory and private banking. Nearly all those who advise this administration have a vested interest in supporting this status quo. This collusion bleeds beyond a conflict of interest. Their only interest is greed, power, and controlling your money.

Someday monetizing debt and printing currency will no longer support this thirst or greed. At such a time something will give and panic will influence those in political control to accept more of the same misguided advice from bankers.

Bankers will warn, eventually, that the entire financial network is under threat of collapse and politicians will react accordingly. Like today’s Cyprus, our banks too will ration and tax your wealth by limiting transfers or withdrawal of your money. This monetary progression is exactly what happens when banks dictate political influence and capital control.

If this threat I’m describing today sounds real then buy physical silver or gold. If not, stay the course. But remember that the merger between banks and politics never bodes well for those entrusting wealth in either.

QUESTION: All of our savings are in 401k roll-over accounts. These funds are not easily gotten to without tax consequences so we are hindered in our ability to accumulate physical gold/silver. So, we have allocated about 30% of our savings in Gold/Silver ETFs. We have been able to accumulate some physical silver a little at a time but is there a better way to protect our lifetime savings?

TPS Reply: Your question arrived just in time to work into this post, thanks. As I’m sure you’re aware, I’m not a big fan of wealth disconnect of any kind, but. The 401k accounts you’re describing do offer tax deferment and the opportunity to store wealth within PMs. The question of the day is does the fund actually have access to an equal amount of physical PM as you have invested? I personally doubt most funds do.

The next question is do you stay the course or suffer the tax consequences from rolling the 401k into physical silver or gold? We can address the ETFs but my biggest concern is when you mentioned “we have been able to accumulate some physical silver”. This, to me, implies that you’re not comfortable with your level of physical holdings, right?

My opinion is that physical holdings should supersede paper PM holdings. We will soon reach a point where all investments are in question of “real” or “paper”. This could lead to panic as wealth attempts to find solid footing.

I’m not a financial advisor so I can only offer what I would do if in your shoes. I would do whatever it takes to accumulate a balance of physical allocations, regardless. I would then store at least 1/3 within arm’s reach or with someone very trusted. By the way — this transfer of wealth could include liquidating, or trading, any personal asset into physical PM, not just a 401k.

Now, as far as your ETF, Sprott Asset Management offers a gold-backed ETF and claims to hold all investment assets in physical gold bullion. Eric Sprott has a respected name within the PM community and is definitely worth checking out. As always, due diligence is recommended so invest time before money. Thanks for the great question, and reading TPS.

QUESTION: How long is the typical wait time for online PM purchases? I’m new to PM (just found TPS) but don’t like the idea of wiring $ in faith hoping the silver arrives as promised.

TPS Reply: I hear you loud and clear…… and 100% agree. The PM industry has little regulations; this is both good news and bad. This is why it is imperative to find a trusted PM trader with a respectable reputation BEFORE BUYING ONE OUNCE. The wait time is unlike anything else shipped since demand and inventory affect how long it takes to physically receive a PM order.

Your online PM dealer doesn’t usually have the PM in hand when you place an order. Most dealers are brokers which mean they work as a middleman between you, the consumer, and the wholesaler. Any delay in shipment usually stems from a whole seller not able to keep par with demand.

Have you considered buying a few silver ounces from a local coin shop? This face-to-face exchange will allow you to build a local relationship, instill confidence, and provide a cash-and-carry exchange. When consulting with PM newbies I usually recommend starting with silver or gold bullion paying as close to “spot” metal price as possible.

Save the large purchases for online and only after your PM confidence grows. Email me for a list of reputable PM dealers, I’m glad to help. Oh, and welcome aboard.

Signs are a forewarning that something important is soon to happen. Arm numbness could be a sign of a heart attack. Night sweats could be an early sign of diabetes. Lately I’ve been searching for signs of a real economic recovery. How else can we explain the latest gold/silver decline, all while the DOW posts another new high, other than a true recovery, right? After all, the great metal sell-off of 2013 can only be attributed to a new found level of economic faith.

Is the city of Detroit a sign of economic recovery? Detroit dropped from a circa 1950ish population of just under two million to less than 700k today. No one counting can be surprised by the bankruptcy of a city when it loses over half of its middle class and industry all while simultaneously growing the state’s pension obligations. Detroit is certainly not a sign of recovery as we watch poverty overtake what was once declared the city of great opportunity.

Nearly half of the wealth of American is stored in real estate. The lion’s share of this wealth rests in single-family homes known as a principal residence. But just as we’re led to believe the great housing recovery is unstoppable (housing bubble 2.0) news of a recent major decline in new mortgage applications say otherwise. Is it possible our great housing recovery could be upended by a 1% increase in mortgage rates?

The signs of a housing recovery are few and far between when the three denominators holding RE values together are cheap money, faith, and leverage.

What is a house worth, in municipalities like Detroit, after stigmatized by bankruptcy? The value of your home is directly affected by the health, and obligation, of your state and local economy.

The anti-recovery list grows longer. The new-found affordability of the Affordable Care Act has to be a sign of recovery, yes? Cities collapsing under the strain of long-term debt and unfunded liabilities have to be a sign of recovery, too. The fact we’ve reached the point of unbridled QE must be the truest sign of real economic recovery.

Why Silver & Gold will rise!!

The positive signs of economic recovery presented by today’s media are nothing more than a monetary distraction. Most individuals have reached a point of no longer willing to think for themselves, not to mention the ability to question those who put motive over principle. If the media or internet says so then it must be true.

I know my stack of PMs will take care of my family’s future for one reason only; what most folks view as financially stable is supported by the ability to create (borrow, print, or tax) currency. Everything from social programs, pensions, real estate values, stocks, banks, etc have reached the point of fiat dependency. This recovery is as real as any structure built upon a foundation of debt leaving no other choice but print of die.

Only the minority now buck this trend of nonstop quantitative easing. The rest, the majority, only argue over how to spend it. Think about this for a moment, please. Can you imagine the Detroit inferno if the evening news reported a significant reduction in social services, section 8 housing, food stamps, disability, etc.? What if a politician announced a monetary commitment to stop deficit spending altogether? The clip below answers it best.

Not only would city streets in every major city burn but the outcry from those invested in paper assets would be so great that the very life of the one proposing such a foolish plan would be in jeopardy.

This “jeopardy” is why your stack of physical silver and gold must rise just to keep a natural order of monetary balance and buying power. The United States, most countries too, have reached the point of no other option than print to appease, both politically and economically speaking.

I know TPS has mentioned this before but we are long past the point of arguing if metal will rise. It must rise, and will rise, as our nation accepts we are to the point of print or burn. TPS recently posted how debt has become a threat to our national security. I’ll go as far to say the domestic threat outweighs the foreign threat when we calculate the growing number of our entitled.

COMMENT: I personally believe the gold bugs are about to be squashed – maybe less than $1000 an ounce!!

TPS Reply: Thanks for the comment. If every prudent person sitting on physical gold had to sell now then “yes”, the gold bugs are soon to be squashed, at least the most recent buyers. But your theory has one giant hole in it when we consider that few bugs are sellers. In fact, many are out buying discounted precious metal.

Let me guess, the DOW is your suggested new opportunity of safe haven? If so, what happens to the value of today’s DJIA if not for perpetual QE? What happens when the DOW has to stand on its own monetary merit? Will the 2008 DOW meltdown pale in comparison when those with wealth realize it’s nothing more than a paper promise?

Bernanke’s pile of printed money supports Wall Street because the lion’s share of this fiat rests on Wall Street. Of course investors in return support WS because they have little choice other than follow the next bubble; can’t you see this? I, for one, will side with the gold bugs by taking my chances with sound money (according to our US Constitution & 5000 years of history).

QUESTION:In your last post, Fake Money Threatens our National Security, you mention the word “printing” but this is inaccurate. The money is nothing more than a digit, not only is it fiat but it doesn’t exist at all…. literally. Your point is noted but you should clarify. Thanks for what you do!!

TPS Reply:Great point, thanks. You’re correct, less than 1/2% of cash deposited actually exists. This number can vary but never anywhere close to a percentage that would make most depositors comfortable. This is why the banking world is deathly afraid of a bank run similar to what happened in Cyprus.

This is also why I recommend keeping most liquidity in cash, silver, or gold form. In my opinion, at least 1/3 of this wealth should be within arm’s reach safely stored in-house or with someone trusted. I wish more folks understood the fragile nature of today’s banking world, fractional reserve lending (banking), fiat currency, and, of course, real money.

Good for you and thanks for the reminder!! By the way to all readers, if this sounds like an overreaction just research the words “bail-in” as it relates to today’s banking institutions. Why not take a proactive stance while this option still exists?

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You will find this Blog is comprised of 100% unbiased research designed to provide the best scenario for protection of your family’s financial security. You will rarely see predictions but will see living evidence of how gold and silver is changing the investment world. Everyday another billionaire or country makes a large investment in metal and for good reason. This side of the site will also have links to business sources if you decide they are relative to your future investments.